comScore(US:SCOR)2021-03-10 17:51Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $90 million, down from $95.2 million in the same quarter last year [32] - Adjusted EBITDA for the fourth quarter was $9.4 million, compared to $5.5 million for the same period last year, with a full year adjusted EBITDA of over $32 million in 2020, up from $6 million in 2019 [42][12] - The net loss for the fourth quarter was $13.2 million, an improvement from a net loss of $21.4 million in the same period last year [42] Business Line Data and Key Metrics Changes - Revenue from ratings and planning in the fourth quarter was $63.6 million, down from $66.8 million year-over-year, primarily due to declines in syndicated digital products [33] - Analytics and optimization revenue increased to $19.3 million from $17.7 million year-over-year, driven by higher custom digital marketing solutions revenue [34] - Movies reporting and analytics revenue fell to $7.1 million from $10.7 million in the prior year, impacted by ongoing theater closures [36] Market Data and Key Metrics Changes - The company noted that its international digital services, which represent about 25% of its syndicated digital services, were harder hit by COVID-19 but are expected to resume growth later in 2021 [11] - The connected TV business is gaining momentum, with advertising agency clients increasingly embracing advanced audience metrics [9] Company Strategy and Development Direction - The company aims to eliminate outstanding debt and invest in next-generation products with the support of new strategic investors [4] - Focus on privacy-safe measurement and preparation for a cookieless world, leveraging predictive audience solutions [14][16] - Expansion into international markets is strategic, with a focus on profitability and partnerships with large tech companies [110] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth in 2021, expecting a 3% to 5% increase, particularly in the second half of the year [45] - The first quarter of 2021 is expected to be impacted by lower movie revenue, but improvements are anticipated as the year progresses [46] - Management highlighted the importance of partnerships in the connected TV space and the competitive landscape [58] Other Important Information - The company ended the fourth quarter with total cash of $50.7 million, down from $66.8 million at the end of 2019, primarily due to cash interest payments [43] - A non-cash charge related to debt extinguishment and associated derivatives is expected in the first quarter, estimated between $15 million and $25 million [49] Q&A Session Summary Question: Investment spend and product roadmap - Management indicated that investments will focus on leveraging existing data sets to create new products, with progress already made in 2020 [54][56] Question: Importance of partnerships in connected TV - Management emphasized that partnerships are crucial for effective advertising and data integration, and they do not need to own everything to succeed [58] Question: 2021 margin guidance - Management expects margins to improve throughout the year, with revenue growth leading to margin expansion by the end of 2021 [63] Question: Movie revenue recovery - Management believes movie revenue will bottom out in the first quarter, with expectations for recovery as theaters reopen [37][46] Question: Approach to declining payments to MVPDs - Management stated that customers use multiple measurement sources, and the company is well-positioned to capitalize on its census measurement approach [88] Question: Preparing for risks of email-based IDs - Management has been preparing for changes in the advertising landscape since 2019 and believes they are in a strong position to adapt [94]